Royal Dutch /Shell group is the world’s fourth largest company with more than US $ 355 billion in annual revenues. It operates in more than 111 countries and regions across the globe. Shell is actively engaged in exploration of oil and gas in well-recognised regions like the frontier regions like the Beaufort Sea and in the Gulf of Mexico. Shell’s key manufacturing facilities are located in Europe, USA, the Middle East and Africa. Further, it has successfully tapped new supplies from major projects that too in challenging frontier atmosphere like Athabasca in Canada and Sakhalin in Russia.(Annual Review 2007).
This research essay conceptualises the actions perused by the Shell between 1999 -2003 to meet its economic, social and environmental commitments and responsibilities and explains how Shell is striving to create value for future.
Evaluate Shell’s multinational marketing strategy and performance paying particular attention to the period 1999-2003. Shell’s international marketing strategy is considered to be very aggressive. Shell’s revenue can be segmented by way of its operations across the globe.
The following table illustrates how Shell derives from various geopolitical regions of its revenue across the globe; From the above table, Shell’s net profit has increased by 45% in 2003 as compared to the year 1999. Further, Shell’s net profit has again increased by 33% in the year 2003 though its net profit had declined by 15% in the year 2002 when it has reported that it had overstated its oil reserves.
Likewise, Shell’s equity share performance also dwindled in the year 2002 and however its current share price is around $ 77. 50.
Further, Net revenue has increased by 100% in the year 2003 as compared to its net revenue in the year 1999. Likewise, Shell has achieved record net revenue of $ 355,782 million in the year 2007 as compared to just $ 105,366 million in the year 1999. This is around an increase of 325% in net revenue in 2003 as compared to that of year 1999. This corroborates that Shell’s overstatement of its oil reserves does not have any impact on its net revenues.
Further, if one analyses the net revenue earned by Shell internationally, Europe tops the list of its major revenue earner for Shell.
Likewise, about 91% of Shell’s revenue is emerging from its oil products sector and chemical sector as compared to its other operating segments. The core aims of the Royal Dutch / Shell Group of Companies are to engage responsibly, efficiently and profitably in the oil, power, gas, renewables, chemicals and other selected business and continuously engaged in the research and development of other alternate sources of energy. Shell’s aim is not only to maximise its wealth but also committed to contribute to sustainable development. Shell international marketing strategy is based on the following principles:
Strong structure of standards, values and assurance. Executing a new diversity and inclusiveness standard. It aims to have over 96% of its major installations certified to ISO 14001. After September 11 attack, focussing great attention to diversity, security and engagement.
It aims to minimise the emission of greenhouse gas emission. It concerns with the significant amplification in oil spill volumes. For the first time, it has been reported about the fresh water usage.
Despite of difficult market conditions, it has reported second highest earnings during the financial year 2007. Shell is able to achieve improvements in costs to the tune of $ 5 billion that too with ahead of target. Shell has achieved an average return on capital employed of 19. 2% Consumers have rated Shell as top brand for the fifth year running. It is worthwhile to note that Shell has perused zero tolerance policy thereby committing to fair competition, adopting no bribes policy and no political kickbacks. Social: Shell has perused a Minimum Health Management Standards. It is applying best ever safety standards.
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